Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of fair value of assets measured on recurring basis

The table below presents the recorded amount of assets measured at fair value on a recurring basis:


(in thousands)	Fair Value		Level 1		Level 2		Level 3
June 30, 2023
Loans HFS	$	4,586	$	—	$	4,586	$	—
Securities AFS:
Mortgage-backed securities	$	225,748	$	—	$	225,748	$	—
Municipal bonds	$	182,731	$	—	$	182,731	$	—
U.S. Treasury securities	$	159,804	$	—	$	159,804	$	—
U.S. agency securities	$	20,195	$	—	$	20,195	$	—
Equity securities	$	3,946	$	3,946	$	—	$	—

December 31, 2022
Loans HFS	$	518	$	—	$	518	$	—
Securities AFS:
Mortgage-backed securities	$	240,981	$	—	$	240,981	$	—
Municipal bonds	$	184,092	$	—	$	184,092	$	—
U.S. Treasury securities	$	170,478	$	—	$	170,478	$	—
U.S. agency securities	$	18,856	$	—	$	18,856	$	—
Equity securities	$	9,979	$	9,979	$	—	$	—

Schedule of fair value of assets measured on nonrecurring basis

The table below presents certain impaired loans that were remeasured and reported at fair value through the allowance for loan losses or credit losses based upon the fair value of the underlying collateral during the reported periods:


	For the Six Months Ended
(in thousands)	June 30, 2023		June 30, 2022
Carrying value of impaired loans before allowance	$	214	$	129
Specific allowance	(38)		(15)
Fair value of impaired loans	$	176	$	114

The following table presents foreclosed assets that were remeasured and reported at fair value during the reported periods:


	For the Six Months Ended
(in thousands)	June 30, 2023		June 30, 2022
Foreclosed assets remeasured at initial recognition:
Carrying value of foreclosed assets prior to remeasurement	$	22	$	—
Charge-offs	—		—
Fair value of foreclosed assets	$	22	$	—

Schedule of inputs used for the Level 3 fair value measurement

The unobservable inputs used for the Level 3 fair value measurements on a nonrecurring basis were as follows:

(dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Discount Ranges

Weighted Average Discount

June 30, 2023

Impaired loans

2,134

Discounted appraisals

Collateral discounts and costs to sell

0% - 100%

15.21%

Foreclosed assets

Discounted appraisals

Collateral discounts and costs to sell

N/A

December 31, 2022

Impaired loans

7,254

Discounted appraisals

Collateral discounts and costs to sell

0% - 100%

4.16%

Foreclosed assets

—

Discounted appraisals

Collateral discounts and costs to sell

N/A

Schedule of carrying amounts and estimated fair values of financial instruments

The carrying amounts and estimated fair values of financial instruments as of June 30, 2023 and December 31, 2022, were as follows:


(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
June 30, 2023
Financial assets:
Cash and due from banks	$	36,662	$	36,662	$	36,662	$	—	$	—
Interest-bearing deposits in other banks	$	185,409	$	185,409	$	185,409	$	—	$	—
Securities AFS	$	588,478	$	588,478	$	—	$	588,478	$	—
Securities HTM	$	146,569	$	124,481	$	—	$	124,481	$	—
Equity securities	$	3,946	$	3,946	$	3,946	$	—	$	—
Nonmarketable equity securities	$	4,330	$	4,330	$	—	$	4,330	$	—
Loans HFS	$	4,586	$	4,586	$	—	$	4,586	$	—
Loans HFI, net of allowance	$	1,926,546	$	1,790,906	$	—	$	—	$	1,790,906
Accrued interest receivable	$	8,239	$	8,239	$	—	$	—	$	8,239
Financial liabilities:
Deposits	$	2,664,183	$	2,654,145	$	—	$	2,654,145	$	—
Other borrowed funds	$	60,000	$	60,000	$	—	$	60,000	$	—
Accrued interest payable	$	4,098	$	4,098	$	—	$	4,098	$	—

December 31, 2022
Financial assets:
Cash and due from banks	$	37,824	$	37,824	$	37,824	$	—	$	—
Interest-bearing deposits in other banks	$	240,568	$	240,568	$	240,568	$	—	$	—
Securities AFS	$	614,407	$	614,407	$	—	$	614,407	$	—
Securities HTM	$	151,683	$	132,407	$	—	$	132,407	$	—
Equity securities	$	9,979	$	9,979	$	9,979	$	—	$	—
Nonmarketable equity securities	$	3,478	$	3,478	$	—	$	3,478	$	—
Loans HFS	$	518	$	518	$	—	$	518	$	—
Loans HFI, net of allowance	$	1,895,639	$	1,807,772	$	—	$	—	$	1,807,772
Accrued interest receivable	$	8,830	$	8,830	$	—	$	—	$	8,830
Financial liabilities:
Deposits	$	2,798,936	$	2,787,198	$	—	$	2,787,198	$	—


Accrued interest payable	$	1,563	$	1,563	$	—	$	1,563	$	—